Lorillard Earnings: Profit Rises Again

Lorillard (NYSE: LO) announced its results for the second quarter on July 25, 2011. Let's take a closer look at the company's industry, financials, and commentary and see what steps you can take next.

Earnings and Revenue:
Lorillard managed to exceed Wall Street estimates with stronger-than-expected EPS and revenues. The company reported EPS of $2.05/share versus the $2.02/share estimate and revenues of $1.69 billion versus the $1.15 billion estimate. EPS rose 18.5% while revenue climbed 11.3% from the same period last year.

The company has now seen four quarters in a row of rising net income. Year over year revenue increases in the past five quarters have averaged 8.5%. Lorillard's revenue has increased the past four quarters on a year-over-year basis.

Income:
For the year, Lorillard reported net income of $7.31 per share. The company trumped analyst projections of $7.04 by 3.8%. According to the reported number, the company's income rose 10.6% from last year's levels.

Conference Call:
The conference call for second quarter earnings can be accessed here.

Official Comment:
"Lorillard delivered strong second quarter results, despite the difficult macro-economic conditions. These results continue to demonstrate the fundamental strength of our brands and our organization," said Murray S. Kessler, Chairman, President and Chief Executive Officer. "We are particularly pleased with the impact of our new strategic growth initiatives, highlighted by the successful introduction of Newport Non-Menthol."

Industry:
The tobacco company's industry is currently enjoying price/earnings growth of 1.6%. The company's EPS lags behind the industry average by 40.7%.

What to Do Next:
Now you're all set to decide what to do with those Lorillard shares until the next earnings announcement. Whether you buy, sell or hold, check back with before the company's next earnings release for a full preview.

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